Core Viewpoint - The company, Jiyuan Group, is launching an IPO with a share price of 10.88 yuan and a price-to-earnings ratio of 25.51, which is lower than the industry average of 27.69, indicating a potential investment opportunity in the dietary supplement sector [1]. Company Overview - Jiyuan Group specializes in the research, innovation, and industrialization of dietary nutritional supplements, providing original and customized nutritional raw materials and formulations globally [1]. - The company is a leading developer and market promoter of HMB nutrients, holding multiple core patents and extensive clinical data for its myHMB® brand [1]. Financial Performance - The projected revenues for Jiyuan Group are approximately 9.47 billion yuan in 2022, 8.92 billion yuan in 2023, and 10.02 billion yuan in 2024, with net profits of about 1.44 billion yuan, 1.61 billion yuan, and 1.75 billion yuan respectively [2]. - Total assets are expected to grow from 924.46 million yuan in 2022 to 1,186.02 million yuan in 2024, while equity attributable to shareholders is projected to increase from 599.85 million yuan to 937.21 million yuan over the same period [3]. - The company's debt-to-asset ratio is expected to decrease from 34.30% in 2022 to 20.23% in 2024, indicating improved financial stability [3]. Research and Development - Jiyuan Group invests approximately 4.96% of its revenue in research and development, reflecting its commitment to innovation in the dietary supplement industry [3].

Core Viewpoint - The company, Jiyuan Group, is focused on the research, innovation, and industrialization of dietary nutritional supplements, aiming to enhance global health through scientific research and clinical trials [4][11]. Company Overview - Jiyuan Group is an international enterprise group specializing in the research and development of dietary nutritional supplement products [4]. - As of the latest prospectus, the company has 16 wholly-owned subsidiaries, 3 affiliated companies, and 5 branches [4]. - The company has established a global R&D, production, sales, and service network with centers in China and the USA, and regional sales headquarters in several countries including Australia, the UK, and Japan [5]. Intellectual Property - The company holds a total of 288 registered trademarks, with 126 registered domestically and 162 registered overseas [6]. - It possesses 228 authorized patents, including 20 domestic invention patents and 127 overseas invention patents [7]. - The company has 18 software copyrights [8]. Financial Performance - The company's revenue for the years 2022, 2023, and 2024 was 947.24 million, 891.89 million, and 1,001.86 million yuan respectively, with main business income accounting for over 99% in each year [11]. - The net profit attributable to shareholders after deducting non-recurring gains and losses was 143.04 million, 153.37 million, and 170.61 million yuan, showing a steady growth trend [11]. Market Presence - The company primarily sells its products overseas, with international sales accounting for 91.40%, 95.25%, and 93.93% of its main business income during the reporting periods [12]. - The company has established long-term stable partnerships with numerous dietary supplement brands, including Abbott and Blackmores, with some collaborations lasting over 10 years [17]. R&D and Innovation - The company emphasizes continuous innovation and has increased its R&D expenses, which were 42.42 million, 43.03 million, and 49.73 million yuan for the respective years, representing about 4.48%, 4.82%, and 4.96% of its revenue [13]. - The company has established partnerships with renowned universities and research institutions for collaborative R&D [10]. Industry Context - The dietary nutritional supplement industry in China is still in its emerging development stage, with less than 20% of the population consuming such products compared to over 67% in mature markets like the USA and Japan [21]. - The market for dietary nutritional supplements in China reached 225.3 billion yuan in 2023, growing approximately 11.6% year-on-year [21]. - The industry is characterized by increasing safety, quality, and brand power, as well as a trend towards product diversification and individualization [22]. Strategic Planning - The company's vision is to provide original and customized nutritional raw materials and formulations through scientific research and global layout [15]. - Future plans include increasing R&D investment, expanding product application areas, and upgrading information management systems [16]. Competitive Advantages - The company has a full industry chain synergy advantage, being one of the few vertically integrated companies in the dietary nutritional supplement sector [17]. - It maintains a strong focus on quality management and has established leading product quality standards [17].

Investment Rating - The report assigns a rating of "Neutral" to the company based on its AHP score of 1.70, which places it in the 22.8% percentile of the non-innovation system AHP model [4][10]. Core Insights - The company is the global leader in HMB with a market share of 53.34% from 2022 to 2024, and it operates across multiple dietary nutrition segments [4][11]. - The dietary supplement industry is expected to grow at a rate of 6% annually from 2023 to 2026, reaching a market size of $223 billion by 2026 [4][20]. - The company has established a global production and sales network, with significant partnerships with major clients like Abbott, which accounts for over 60% of its HMB business revenue [4][18]. Summary by Sections AHP Score and Expected Allocation Ratio - The AHP score for the company is calculated at 1.70, indicating a mid-to-low ranking within the non-innovation system AHP model [4][10]. - Expected allocation ratios for offline investors are 0.0171% for Class A and 0.0117% for Class B under a neutral scenario [10]. Company Fundamentals and Highlights - The company is vertically integrated from raw material production to finished product formulation, making it one of the few in China to achieve such integration [4][11]. - HMB is the core product, with the company holding key patents and being the only supplier with USP certification for its myHMB® brand [4][11]. - The company has a strong presence in the glucosamine market with a market share of over 11% from 2022 to 2024 [4][11]. Financial Comparison with Peers - The company's revenue and net profit growth rates from 2022 to 2024 are 2.84% and 10.81%, respectively, which are below the average of comparable companies [4][23]. - The gross margin for the company is higher than that of its peers, with figures of 38.87%, 43.23%, and 43.50% from 2022 to 2024 [4][25]. - The company’s operating cash flow for 2024 is projected to be second only to a peer company, indicating strong cash generation capabilities [4][29]. Fundraising Projects and Development Vision - The company plans to raise funds for expanding its production capacity for HMB and other nutritional ingredients, as well as for establishing a technology innovation center [4][35]. - The planned projects include an annual production increase of 1,200 tons of HMB and 300 tons of glucosamine, among other products [4][36].

Group 1 - The company plans to publicly issue 50.01 million shares, accounting for 12.50% of the total share capital after issuance [1] - The strategic placement plan will participate in the subscription of up to 10% of the public offering scale, which is 5.01 million shares, with a total subscription amount not exceeding 50 million yuan [1] - The company is an international enterprise group specializing in the research, innovation, and industrialization of dietary nutritional supplements [1] Group 2 - The company's net profit attributable to the parent company for the years 2022 to 2024 is projected to be 142 million yuan, 160 million yuan, and 174 million yuan respectively [2] - The company expects a year-on-year revenue growth of approximately 15.03% to 27.36% for the first half of 2025, with net profit growth of about 8.56% to 19.20% [2] - The total planned investment for fundraising is approximately 603 million yuan, allocated to various projects including the construction of a nutritional health raw material production base and the expansion of production lines [2]

Core Viewpoint - The Shanghai Stock Exchange has approved the IPO of Jiyuan Group, a company specializing in the research and development of dietary nutritional supplements, marking a significant step in its growth and expansion in the global market [1]. Company Overview - Jiyuan Group is an international enterprise focused on the R&D and industrialization of dietary nutritional supplements, providing innovative and customized nutritional raw materials and formulations [2]. - The company is the largest global supplier of HMB (beta-hydroxy-beta-methylbutyrate) and a core supplier of high-quality glucosamine and other products, with a strong market presence across major regions including China, Asia, the US, Europe, Australia, and South America [2][9]. Financial Performance - The company reported revenues of 947 million yuan, 892 million yuan, and 1.002 billion yuan for the years 2022, 2023, and 2024, respectively, with net profits of 143 million yuan, 153 million yuan, and 171 million yuan during the same period [4]. - As of December 31, 2024, total assets amounted to 1.186 billion yuan, with a debt-to-asset ratio of 20.23% [5]. - The company anticipates a revenue growth of approximately 14.39% year-on-year for Q1 2025, with net profit expected to increase by about 6.42% to 11.55% [5]. Market Position - Jiyuan Group holds a market share of approximately 65.80% in the global HMB market, with projected shares of 52.27% and 53.34% for 2023 and 2024, respectively [9]. - The company has established a solid position in the glucosamine market, with market shares of 11.92%, 13.85%, and 12.61% from 2022 to 2024 [10]. Client Relationships - The company heavily relies on Abbott Group, with sales to Abbott accounting for 23.44%, 17.38%, and 19.44% of its main business revenue over the reporting periods, and 69.26%, 64.69%, and 66.19% of its HMB business revenue [11]. - Over 90% of the company's revenue comes from international sales, primarily in the US, Europe, Australia, and Southeast Asia [11]. IPO Fund Utilization - The company plans to raise 603 million yuan through its IPO, which will be allocated to the construction of a nutritional health raw material production base, expansion of production lines, establishment of a technology innovation center, and to supplement working capital [7][8].